A clampdown is to be launched on fake reviews and subscription traps.

The government has announced new laws to help protect consumers and stop companies using underhand techniques to boost their online ratings.

The reforms, announced by the government today (April 20) make it clearly illegal to pay someone to write, host, commission or facilitate a fake review so people are not cheated by bogus ratings.

They will also give consumer watchdog the Competition and Markets Authority (CMA) more powers to support consumers and crack down on rogue traders.

Businesses will have to make it much easier for consumers to opt out of subscriptions. Reminders will have to be issued when a free trial or low-cost introductory offer is coming to an end and they must let customers exit a contract in a straightforward, cost-effective and timely way, so they are not stuck paying for products or services they no longer want.

Prepayment schemes like Christmas savings clubs will have to fully safeguard customers' money through insurance or trust accounts. This will prevent scandals like Farepak, in which the business went bust and thousands of people lost their money.

The government is giving the CMA enhanced powers to tackle bad business practices. The watchdog will be able to directly enforce consumer law and fine firms up to 10 per cent of their global turnover for mistreating customers.

This replaces the policy of going through a lengthy court process, which can take years.

Paul Scully, consumer minister, said: "We're making sure consumer protections keep pace with a modern, digitised economy. "No longer will you visit a 5 star-reviewed restaurant only to find a burnt lasagne or get caught in a subscription in which there's no end in sight. Consumers deserve better and the majority of businesses out there doing the right thing deserve protection from rogue traders undermining them."

The average UK household is influenced by online reviews to spend around £900 each year and s further £60 on unwanted subscriptions. The reforms come as the trend towards online shopping has accelerated due to the pandemic, casting a spotlight on bad business practices like fake reviews.

Rocio Concha, director of policy and advocacy at Which?, said: "It's very positive to see action to tackle the avalanche of fake reviews that undermine confidence in online shopping and tougher powers for the CMA to protect consumers from rogue companies that consistently flout the law - including the ability to fine firms directly.

"The impact of these rip-off practices is enormous. It is currently a far too complicated and lengthy process for the CMA to hold businesses to account."

Punchline says: "Businesses in Gloucestershire have long felt the sting of fake reviews.

"In 2014 we ran a piece on how bogus Tripadvisor reviews were affecting traders in our county.

It's great to see the government is now acting to help stop underhand practices and protect businesses and consumers alike."

Will the reviews help your business? Let us know mark@moosemarketingand pr.co.uk